Late last year, I wrote about how my credit card pays me cash. I recently ran across a discussion on our Credit Cards discussion board, though, where I learned that compared to some of my fellow Fools, I'm just a piker.
To back up a bit, in my earlier article I explained:
I'm currently using a credit card that gives me 1% back on all my purchases and on some [such as gas], I get 5% back. Over the months, these little rewards add up. I recently cashed in a check the card sent me for $263 -- not bad, eh? Not only do I get the convenience of paying for most things with plastic -- I even make money on the deal.
Well, here are some snippets from our board discussion:
To the question, "So, what did you make last year on your credit card?", NaggingFool reported, "Last year around $600, this year it will be over $1,000."
Booa reported "a household total of about $300 in about a year."
Linanil chimed in: "Last year, I received around $700 in cash back from cards." She added that she paid several hundred in interest as she was paying off debt. Overall, thanks to the cash-back feature, she came out ahead by $100. As she gets the debt under control, her cash back will represent pure gravy.
4inthefamily took advantage of long-term accumulations possible on cards that help you buy cars: "We cashed in our Driver's Edge rebates this year when [my dear husband] bought a motorcycle. That was $1,359 -- but was admittedly accumulated over three years. I received about $200 cash back on another card. I used my Old Navy card when buying my kids' school clothes and received 20% off. I also used my Kohl's card when making some clothing purchases partway through the year and received 20% off."
Concordiadiscors, like me, didn't feel so impressive: "We're kinda slacking so far this year. Between cash back and gift cards, we've only made around $250. Guess I'd better go drive around in circles so I can rack up more of that sweet, sweet 5% on gas purchases."
Join the club
If you're not already collecting cash back from your credit card purchases, look into getting some better cards. You can learn much more about the surprisingly interesting credit card industry in our Credit Center, which also features tips on getting out of debt, along with guidance on how to manage your credit effectively. (We even offer spiffy Motley Fool credit cards, some of which offer cash back.) Really. I mean it. There's some great stuff in our Credit Center, and it's all free reading.
The following articles can help you:
- The 8 Commandments of Credit
- The Best Low-Interest Credit Card?
- I Caught You Looking!
- Urban Credit Legends Exposed!
- $24 Billion to Card Companies . for What?
- Sneaky Credit Card Tactics
While we're on the topic of credit cards, you might also want to consider investing in one or more credit card-issuing companies, such as American Express
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Longtime Fool contributor Selena Maranjian does not own shares of any companies mentioned in this article.